Question
The following is a common-sized income statement for Alpha and Beta Companies. (in thousands) Alpha % Beta % Net Sales 100.0% 100.0% Cost of Goods
The following is a common-sized income statement for Alpha and Beta Companies.
| (in thousands) | Alpha % | Beta % |
| Net Sales | 100.0% | 100.0% |
| Cost of Goods Sold | 64.6% | 60.8% |
| Gross Profit | 35.4% | 39.2% |
| Operating Expenses |
|
|
| Selling, General and Adm. | 15.4% | 15.3% |
| Other | 1.4% | 1.5% |
| Income Before Income Tax | 18.7% | 22.4% |
| Income Tax Expense | 2.7% | 3.1% |
| Net Income | 16.0% | 19.3% |
Which company had the lower net income as a percentage of sales?
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Managerial Accounting
Authors: Kulp, Susan, Dragoo, Amie, Hartgraves, Al L, Morse Wayne J.
9th Edition
1618533622, 9781618533623
